Internationalization of Local Enterprises : Case studies from Saitama Prefecture

Small and medium-sized enterprises (SMEs), which account for approximately 99.7% of all Japanese companies, form the backbone of regional economies and employment. However, due to population decline and stagnant domestic demand, Japan’s internal market is shrinking. To ensure sustainable growth, SMEs must explore new markets. According to Ansoff’s Matrix, entering entirely new markets or developing new products carries high risk. In contrast, expanding existing domestic products into similar overseas market segments is a more rational and lower-risk strategy. The Japanese government’s “10 billion Yen Enterprise Creation Project” aims to foster mid-sized firms from regional roots to drive economic revitalization. Export-driven external demand acquisition is especially vital for SME growth. “The 2025 White Paper on Small and Medium Enterprises” emphasizes that smaller firms derive the most benefit from export-led revenue growth, and early engagement accelerates this growth. Moreover, overseas expansion not only strengthens corporate earnings but also enhances regional branding and creates jobs, thereby energizing local economies. This research note examines three manufacturing SMEs in Saitama Prefecture—Yamato Alloy Group, industria, and Kyodo Shoji (COEDO BREWERY)—as case studies of global expansion through domestic production and export. It also considers the rapid advancement of generative AI, which offers increasing productivity and internationalization support for SMEs with limited resources. By analyzing how these companies utilize generative AI, the study aims to provide practical insights for SMEs seeking to expand globally through exports.